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Fix Allowance Deduction when on leave

Fri, 06 May 2016 12:40:50 PM  (Last updated: Thu, 02 Jun 2016 06:35:48 PM)


my company offer RM 500 allowance (car + petrol + toll + parking), but if i apply leave for that particular month. Company will deduct the allowance with the reason that you are not working that day, not meeting up with customer, so must deduct the allowance. deduct as how many days you apply for the leave.

is this legal for a company to do that? 

please advise, thank you

KL Siew
Fri, 06 May 2016 05:25:52 PM

If the allowance is fixed and not by reimbursement with receipts, I think the company should not do that unless of course, the practice of such deduction had been made known to you contract of service.

Thu, 02 Jun 2016 05:12:53 PM


My question similar to the topic did the company has the right to deduct fixed/traveling allowances if the staff take unpaid leave. The deduction based on how many days you took the unpaid leave.

KL Siew
Thu, 02 Jun 2016 06:35:48 PM

If the allowance of RM500 is a lump sum, I think it should be included for calculation of no pay leave. Consult the Labour Department for official opinion.

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